First time buyers allowance

M

ma&ma

Guest
Hi, I have a 2yr old mortgage and am getting married in Feb. My partner has never owned a property. Should we apply for tax relief as a married couple from FEb. How many years first time buyers allowence will he be entitled to? Does he lose 2 years or are we viewed independently. we are living in an aptartment but will probably buy a house in the next year or so. Could he buy at that stage even if we married and claim his full 7yrs allowence. All advice appreciated
 
Apply for married couple tax relief as soon as you get married.

Unfortunately the fact that he will be a FTB is of no benefit to you when you buy your house. There is no loophole there and the fact that you already own will be taken into account.
 
Suspect there may be some confusion between Stamp Duty rules for First Time Buyers and tax relief on interest for First Time Buyers.

On Stamp Duty, unless your fiancee buys a property on his own to live in before the wedding (which is unlikely unless you want to stall the wedding to allow him time for that :p) in any future joint home purchase after the wedding you'll be considered non-FTB's for Stamp Duty purposes.

On mortgage interest relief, he'll only qualify for mortgage interest relief at all if he's named on the mortgage.

If you buy a new home together after the wedding, he'll get FTB rates of mortgage interest relief for seven years; you'll get the balance of seven years from when you first purchased.
 
Thanks a million for that, unfortunately no chance of buying in the next month!!!
Thats helpful though because we can now look at how much benifit it would be him claiming tax relief from feb as opposed to waiting unitll we buy a house where the interest will obvioulsy be higher
 
May I veer slightly off topic within the same subject ?

If a married couple each independently owning 2 houses and still within the 5 year stamp duty clawback period get married , are they free to rent out one of the houses or sell one without the clawback ? Or if cohabiting as newlyweds could be expected to do, if they want to avoid being hit by a big stamp duty bill, are they expected by revenue to leave one of the houses unoccupied ?
 
Or sell it?

There is no exemption from the clawback in the circumstances you outline.

However, you should note that the clawback period was amended in the most recent budget from 5 years to 2 year (for deeds of transfer executed on or after 5 December 2007). For those executed beforehand, and where the property is rented out on or after 5 December 2007, a clawback will not arise where the letting is in the 3rd/4th/5th years of ownership.
 
stir crazy said:
If a married couple each independently owning 2 houses and still within the 5 year stamp duty clawback period get married , are they free to rent out one of the houses or sell one without the clawback ?
Click to expand...
The SD clawback period is now 2 years as of Budget 2008 so if you rent a former PPR out after 2 years ownership and occupancy then there is no SD clawback. If you have rented it out before Budget 2008 within 5 years then the clawback applies.
 
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